10 shares of VCN.TO cost about $300. It’s not a lot of money because it was the left over cash from all the dividend DRIPs in one of our TFSA accounts. Since Questrade does not charge commissions for purchasing ETFs, it makes sense to add a few shares of ETFs incrementally. (Note: If you want a Questrade referral code, give me a shout).

The main reason for adding Emera to our dividend portfolio is to increase our exposure in the utilities sector. Before the Emera purchase, the only utilities stocks that we own were Fortis (FTS.TO) and Brookfield Renewable Energy (BEP.TO).

From Google Finance:

Emera Incorporated is an energy and services company that invests in electricity generation, transmission and distribution, as well as gas transmission and utility services. The Company operates through six segments: NSPI; Emera Maine; Emera Caribbean, which includes Emera (Caribbean) Incorporated and its subsidiaries, which includes The Barbados Light & Power Company Limited, Dominica Electricity Services Ltd., Grand Bahama Power Company Limited, Emera Utility Services (Bahamas) Limited and an equity investment in St. Lucia Electricity Services Limited; Pipelines, including Brunswick Pipeline and an equity investment in Maritimes & Northeast Pipeline; Emera Energy, including Emera Energy Services, New England Gas Generating Facilities, Bayside Power, Brooklyn Energy, equity investments in Bear Swamp Power Company LLC and Northeast Wind Partners II, LLC; and Corporate and Other, which includes Emera Utility Services, Emera Newfoundland & Labrador Holdings Inc., and holding companies.

Emera has a 9 year dividend increase streak. The stock currently has a PE ratio of 14.61, a dividend yield of 4.44%, a payout ratio of 65%, a return on equity rate of 12.63%, and a price/book ratio of 2.0. The company has grown its revenue by 10.7% the last 3 years while increase its dividend by about 6.9% in the same period. Just recently Emera announced a 10% dividend increase.

The company also recently acquired Florida based TECO Energy. I really like this acquisition because it gives Emera further geographically diversification and a larger client base. In addition to the recent 10% dividend increase, Emera has extended its 8% annual dividend growth target through to 2020 from 2019. This means our yield on cost is expected to increase to about 6% by 2020. Hopefully the expected dividend growth will trigger more investors to buy Emera moving forward and drive the stock price higher.

Hi I’m Bob from Vancouver Canada, I am working toward joyful life and financial independence through frugal living, dividend investing, passive income generation, life balance, and self-improvement. This blog is my way to chronicle my journey and share my stories and thoughts along the way.
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Energy use per capita may be declining but overall use is still increasing due to population growth, plus when energy prices recover (and they inevitably will at some point) the price of electricity will increase as well, which should help improve EMA’s (and others) positions. We also own some shares, and despite having the same doubts as Mr Tako, we also decided to add positions in utility companies. It remains to be seen what will happen.

I like investing in utilities because their dividend payout is so safe. It’s hard for consumers to say they suddenly don’t want electricity, because that will never happen. Have to keep a close eye out on the utility company’s customer base / regulation!

Emera is a good stock to hold. They are expanding through acquistions and the Muskrat Falls Project to name a few. Nova Scotia Power has a “monopoly” as the power provider in Nova Scotia. There are windturbines in Nova Scotia own by other companies, but ultimately the residents of Nova Scotia only pay Nova Scotia Power.

These look like interesting buys. I’m not familiar with Emera but the charts look really impressive. (I look at 5 year and 10 year charts to quickly get an idea of how a stock performs). And who can complain about that yield!?

My mission is to show that financial independence is indeed possible for a family with kids while living in an expensive city like Vancouver.

My focuses include dividend & ETF investing, financial independence, early retirement, happiness, fruguality, and finding the right personal balance between saving for the future and enjoying life today.